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Investment in Real Estate | 12 Months Ended
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Dec. 31, 2022
Real Estate [Abstract] |
Investment in Real Estate | Investment in Real Estate The following table summarizes the Company’s investment in real estate, at cost as of:
| December 31, 2022 |  | December 31, 2021
Land | $ | 1,397,714 |  |  | $ | 1,313,385 |
Building and improvements | 6,273,655 |  |  | 6,241,254 |
Tenant and leasehold improvements | 868,193 |  |  | 786,991 |
Furniture and fixtures | 9,639 |  |  | 14,020 |
Property under development | 167,371 |  |  | 5,827 |
INVESTMENT IN REAL ESTATE, AT COST | $ | 8,716,572 |  |  | $ | 8,361,477 |
Acquisitions of Real Estate On April 27, 2022, the Company completed its previously announced acquisition of Washington 1000, a fully entitled office development site in Seattle, Washington for a total purchase price of $85.6 million, before certain credits, prorations and closing costs. On May 19, 2022, the Company purchased a parcel of land at Sunset Gower Studios that was previously encumbered by a ground lease for a total purchase price of $22.0 million, before certain credits, prorations and closing costs. On July 15, 2022, the Company purchased 5801 Bobby Foster Road, approximately 29 acres of land with an office/warehouse located in Albuquerque, New Mexico, for the storage of trailers and other rental assets used to serve the surrounding studio production industry. The property was acquired for a total purchase price of $8.0 million, before certain credits, prorations and closing costs. The following table represents the Company’s final purchase price accounting for the asset acquisitions completed in 2022:
|  | Washington 1000 |  | Sunset Gower Studios Land |  | 5801 Bobby Foster Road
TOTAL ACQUISITION COST(1) |  | $ | 86,313 |  |  | $ | 22,156 |  |  | $ | 8,457 |
Relative fair value allocation |  |  |  |  |  |
Land |  | $ | 59,987 |  |  | $ | 22,156 |  |  | $ | 2,189 |
Building and improvements |  | 11,053 |  |  | — |  |  | 6,268 |
Parking easement(2) |  | 15,273 |  |  | — |  |  | — |
TOTAL |  | $ | 86,313 |  |  | $ | 22,156 |  |  | $ | 8,457 |
_____________ 1.Includes capitalized transaction-related expenses. 2.Parking easement has an indefinite useful life and is recorded in deferred leasing costs and intangible assets, net on the Consolidated Balance Sheet. On December 23, 2021, the Company purchased the 197,136 square-foot 5 th & Bell office property located in Seattle, Washington. The purchase price before certain credits, prorations and closing costs was $118.9 million. The following table represents the Company’s final purchase price accounting for the 5 th & Bell acquisition:
TOTAL ACQUISITION COST(1) |  | $ | 118,907 |
Relative fair value allocation |  |
Investment in real estate |  | $ | 102,939 |
Deferred leasing costs and in-place lease intangibles(2)(3) |  | 10,443 |
Below-market ground leases(2)(3) |  | 10,844 |
Below-market leases(3)(4) |  | (5,319) |
TOTAL |  | $ | 118,907 |
_____________ 1.Includes capitalized transaction-related expenses. 2.Included in deferred leasing costs and intangible assets, net on the Consolidated Balance Sheet. 3.The weighted-average amortization period of these intangible assets and liabilities is 9.4 years (before any renewal or extension options). 4.Included in intangible liabilities, net on the Consolidated Balance Sheet. Impairment of Long-Lived Assets During the years ended December 31, 2022 and 2021, the Company recorded $13.0 million and $2.8 million, respectively, of impairment charges related to the tangible assets of its Del Amo office property due to a reduction in the estimated fair value of the property. The estimated fair values of $2.8 million and $17.4 million as of the respective measurement dates were based on the sales price and the then-estimated sales price of the property, respectively. These fair value measurements are classified within Level 2 of the fair value hierarchy. The property was sold in August 2022. During the year ended December 31, 2022, the Company recorded $1.5 million of impairment charges related to the tangible assets of its Northview Center office property due to a reduction in the estimated fair value of the property. The property was sold in August 2022. The estimated fair value of $46.0 million was based on the sales price of the property, which is classified within Level 2 of the fair value hierarchy. During the year ended December 31, 2022, the Company recorded $3.1 million of impairment charges related to the tangible assets of its 6922 Hollywood office property due to a reduction in the estimated fair value of the property. The property was sold in October 2022. The estimated fair value of $96.0 million was based on the sales price of the property, which is classified within Level 2 of the fair value hierarchy. The Company did not record any impairment charges during the year ended December 31, 2020. Dispositions of Real Estate The following table summarizes information on dispositions completed during the year ended December 31, 2022. The Company did not complete any dispositions related to consolidated entities during the years ended December 31, 2021 and 2020.
Property |  | Segment |  | Date of Disposition |  | Square Feet |  | Sales Price(1) (in millions)
Del Amo |  | Office |  | 8/5/2022 |  | 113,000 |  |  | $ | 2.8 |
Northview |  | Office |  | 8/30/2022 |  | 179,985 |  |  | 46.0 |
6922 Hollywood |  | Office |  | 10/20/2022 |  | 205,189 |  |  | 96.0 |
TOTAL DISPOSITIONS IN 2022 |  |  |  |  |  | 498,174 |  |  | $ | 144.8 |
_____________ 1.Represents gross sales price before certain credits, prorations and closing costs. These properties were considered non-strategic to the Company’s portfolio. The disposition of these properties resulted in a loss of $2.2 million for the year ended December 31, 2022. This amount is included in the loss on sale of real estate line item on the Consolidated Statement of Operations. Held for Sale The Company had one and four properties classified as held for sale as of December 31, 2022 and December 31, 2021, respectively. The properties were identified as non-strategic assets to the Company’s portfolio. The following table summarizes information on properties classified as held for sale as of December 31, 2022 and 2021:
Property |  | Segment |  | Submarket |  | Square Feet |  | Status as of December 31, 2022 |  | Status as of December 31, 2021
Skyway Landing |  | Office |  | Redwood Shores |  | 246,997 |  |  | Held for Sale(1) |  | Held for Sale
Del Amo |  | Office |  | Torrance |  | 113,000 |  |  | Sold |  | Held for Sale
Northview |  | Office |  | Lynnwood |  | 179,985 |  |  | Sold |  | Held for Sale
6922 Hollywood |  | Office |  | Hollywood |  | 205,189 |  |  | Sold |  | Held for Sale
_____________ 1.The property was sold on February 6, 2023 for $102.0 million before certain credits, prorations and closing costs. The following table summarizes the components of assets and liabilities associated with real estate held for sale as of December 31, 2022:
|  | Skyway Landing
ASSETS |  |
Investment in real estate, net |  | $ | 92,148 |
Accounts receivable, net |  | 112 |
Straight-line rent receivables, net |  | 460 |
Deferred leasing costs and intangible assets, net |  | 501 |
Prepaid expenses and other assets, net |  | 17 |
ASSETS ASSOCIATED WITH REAL ESTATE HELD FOR SALE |  | $ | 93,238 |
LIABILITIES |  |
Accounts payable, accrued liabilities and other |  | $ | 400 |
Security deposits and prepaid rent |  | 265 |
LIABILITIES ASSOCIATED WITH REAL ESTATE HELD FOR SALE |  | $ | 665 |
The following table summarizes the components of assets and liabilities associated with real estate held for sale as of December 31, 2021:
|  | Northview Center |  | Skyway Landing |  | Del Amo |  | 6922 Hollywood
ASSETS |  |  |  |  |  |  |  |
Investment in real estate, net |  | $ | 40,338 |  |  | $ | 89,873 |  |  | $ | 15,213 |  |  | $ | 91,353 |
Accounts receivable, net |  | 95 |  |  | 142 |  |  | — |  |  | 103 |
Straight-line rent receivables, net |  | 901 |  |  | 1,659 |  |  | — |  |  | 4,714 |
Deferred leasing costs and intangible assets, net |  | 751 |  |  | 450 |  |  | 2,742 |  |  | 1,999 |
Prepaid expenses and other assets, net |  | — |  |  | — |  |  | — |  |  | 187 |
ASSETS ASSOCIATED WITH REAL ESTATE HELD FOR SALE |  | $ | 42,085 |  |  | $ | 92,124 |  |  | $ | 17,955 |  |  | $ | 98,356 |
LIABILITIES |  |  |  |  |  |  |  |
Accounts payable, accrued liabilities and other |  | $ | 184 |  |  | $ | 273 |  |  | $ | 12 |  |  | $ | 1,372 |
Intangible liabilities, net |  | — |  |  | — |  |  | — |  |  | 96 |
Security deposits and prepaid rent |  | 395 |  |  | 1,205 |  |  | — |  |  | 361 |
LIABILITIES ASSOCIATED WITH REAL ESTATE HELD FOR SALE |  | $ | 579 |  |  | $ | 1,478 |  |  | $ | 12 |  |  | $ | 1,829 |

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- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -URI https://asc.fasb.org/topic&trid=2156125 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 978 -URI https://asc.fasb.org/topic&trid=2134977 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 976 -URI https://asc.fasb.org/topic&trid=2134846 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 974 -URI https://asc.fasb.org/topic&trid=2156429 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 972 -URI https://asc.fasb.org/topic&trid=2134617 + Details
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